[Click eStock] "Silicontwo Shifts Focus from US to Europe"

On April 28, Yuanta Securities stated that despite the contraction in consumer sentiment across Europe, demand for K-beauty remains relatively robust, and projected that Silicontwo will continue to grow. The target price was raised from 42,000 won to 49,000 won.

Lee Seungeun, a researcher at Yuanta Securities, explained, "Silicontwo is securing a stable demand base centered on retail channels through initiatives such as entering Boots and establishing a fixed Korean skincare category." She added, "In this era of high inflation, the preference for cost-effectiveness highlights the price and efficacy competitiveness of K-beauty, creating an environment that enhances its market penetration."

She continued, "While protectionism is strengthening in the United States, Europe is establishing itself as a strategic market where practical growth infrastructure is being built, including securing logistics hubs, expanding retail channels, and forming a high-margin structure."

She also emphasized, "Last year, sales in Europe increased by 49% compared to the previous year, making it a rapidly emerging key region that is replacing the United States."

Lee analyzed, "The company is transitioning to a multi-portfolio system centered on high-growth brands such as Cosrx, Joseon Beauty, TirTir, Medicube, and Biodance, thereby reducing its dependence on Cosrx." She added, "The fact that multiple brands are achieving real growth within the Silicontwo platform demonstrates the platform power of the distributor."